EU, Indonesia agree to develop local products

Jakarta (ANTARA News) - The European Union (EU) and Indonesia have agreed to develop local products for improving competitiveness among global nations, especially in the economic field.

"The car industry in Indonesia can use metals from local production. Therefore, it needs to be developed. This agreement can enable competition of downstream products in Europe," Minister of Industry Airlangga Hartarto said in a press statement received here on Wednesday.

The dialogue between the EU and Indonesian government representatives (EIBD) has produced recommendations for the economic progress of both parties. Some of the core recommendations developed in the forum include the need for more trained workers in Europe and Indonesia, reduction of import restrictions, and harmonization of import procedures and other technical requirements.

The recommendations presented in the dialogue reflect the findings of the first edition of the EU-Indonesia Economic Relations Study, highlighting the current economic relations between Indonesia and the EU and the potentials associated with the development of Comprehensive Economic Partnership Agreement (CEPA).

There are three aspects to the report that describes the characteristics of foreign direct investment in Indonesia.

First is the collaboration of investment from European countries with local partners to support production activities. This process stimulates the growth of the domestic industry.

Secondly, EU companies are open to sharing technology and innovation, enabling its reference by SMEs in partner countries.

Thirdly, EU investment is a long-term orientation with its cutting-edge technology.

EU investments also emphasize the aspects of quality, especially on human resources.

Head of Indonesian Government Negotiator Iman Pambagyo explained more about the ongoing CEPA negotiations.

The negotiation process will consider the joint recommendations of the business sector. The discussion also highlighted the diversity of industry representatives who contributed to the recommendation. In addition to international trade and investment movements, the European and Indonesian negotiator teams also need to understand the needs from a variety of different businesses, he stated.

Meanwhile, the Deputy Chief Negotiator of the EU, Filip Deraedt welcomed the event as a result of a solid collaboration between European and Indonesian businessmen through European Business Chamber of Commerce (Eurocham), Indonesian Chamber of Commerce and Industry (Kadin), and Indonesian Employers Association (Apindo).

"There is still potential in European and Indonesian trade relationships, and EIBD is a strategic tool to bring constructive policy dialogue and recommendations that make European and Indonesian businesses grow together," Deraedt revealed.

The event was held after the third round of negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the European Union that took place in September in Brussels, which provide an opportunity for business and government leaders from Indonesia and Europe to provide updated information to negotiators regarding current industry demands.

Source: ANTARA News

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